In shipping adventures, calamities such as damage, loss of lives
and goods may occur. In such a case, there may be an action against
the owner, charterer, manager or the operator of the ship or even
the ship involved. If the ship or its owner, charterer, manager or
the operator of the ship is allowed to bear the brunt of the damage
or loss, it may affect them to the extent that they may be out of
business.
It is to this end that the law protects them, not necessarily to
support their potential negligence, default or wrongful action or
to exonerate their liability but, as a matter of public policy, to
keep them in business for the greater good of maritime
commerce.
The Admiralty Jurisdiction Act, ('AJA') provides for
limitation of liability proceedings, where a defendant has been
sued for compensation under any admiralty law, including the
Merchant Shipping Act, for any calamity on the sea. It gives a
defendant, who apprehends that a claim for compensation, may
